Strength In Sydney’s Auction Market While Melbourne Auction Activity Fades

Strength In Sydney’s Auction Market While Melbourne Auction Activity Fades

This week, the combined capital city preliminary auction clearance rate improved across a higher volume of auctions.  There were 1,163 homes taken to auction over the week, up on the 1,064 the week prior. Of the 837 results collected so far, 67.7% were reportedly successful, which was higher than last week’s preliminary figure of 64.7%.  Later revising down to 60% at final collection. This time last year a higher 1,615 capital city homes were auctioned with a final clearance rate of 70%.

The performance across the two largest capital cities remains mixed as Melbourne saw the lowest number of auctions held since May this week, while Sydney recorded the busiest week for auctions since April.

Preliminary results across Melbourne show just under half of the homes taken to auction this week were successful (49.6%), while the other half were reportedly withdrawn. This was down slightly on last week’s preliminary figure (50.3%). There were 167 auctions scheduled across the city, down on the 222 over the week prior.   Of the sold results collected, 88.3% sold prior to the scheduled auction date. One year ago, a much higher 768 Melbourne homes were auctioned, recording final clearance rate of 74.4%.  The high withdrawal rate against an already low number of scheduled auctions, together with such a high proportion of properties selling prior to the auction event rather than under the hammer, implies vendors have become increasingly reluctant to test the market through the lockdown period.

There were 730 Sydney homes taken to auction this week, returning a preliminary auction clearance rate of 74%.  This was an improvement on last week’s preliminary figure of 71.9% which later revised down to 66.1% at final collection.  In stark contrast to Melbourne, the number of auctions across Sydney has been consistently trending higher, with this week’s auction volume, at 730, the highest the city has held since April.  One year ago, a lower 590 Sydney homes were taken to auction returning a higher final success rate (74.5%).

Across the small markets, Adelaide recorded a preliminary clearance rate of 83.9%, the highest of the smaller cities, Canberra followed with 75.9% of homes selling at auction over the week.

From Corelogic

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